Seylan Bank reports Rs. 3,189 mn PAT | Daily News


Seylan Bank reports Rs. 3,189 mn PAT

Chairman Ravi Dias  &  Directo CEO Kapila Ariyaratne
Chairman Ravi Dias & Directo CEO Kapila Ariyaratne

In the backdrop of a challenging external environment, Seylan Bank recorded a Profit-after-Tax of Rs. 3,189 million for the year ended 31st December 2018 after one-off adjustment of Rs. 1,135 Million to resolve the long standing issue of additional gratuity.

The Bank’s advances grew by 16.4% while the deposit base grew by 16.4%. Net interest income increased by 14.6% while net fee and commission income from core banking activities grew by 7.0%.

The impairment charge grew by 131% compared to the prior year due to deterioration in the overall NPA ratio as well as the accelerated impairment provision as per SLRFS 9. As a result the Bank’s overall Provision Cover and the Open Credit Exposure have improved in 2018.

Mirroring the developments across the industry, the NPA ratio increased by 1.6% over the previous year. The Bank reported a net advance growth of Rs.46 billion with net advances growing from Rs. 281 Billion to Rs. 327 Billion during 2018.

The overall deposit base recorded a growth of Rs. 50 billion from Rs. 307 billion by end of 2017 to Rs. 357 billion by December 31, 2018. CASA growth slowed down with a notable shift from low cost to fixed deposits due to increasing interest rates.

Net interest income recorded a healthy growth of 14.6% in line with 14.4% growth of total assets. The Bank’s total assets increased to Rs. 467 billion in 31 December 2018 from Rs. 408 billion in 31 December 2017.

Net fee and commission income witnessed a growth of Rs. 266 million from Rs. 3,788 million to Rs. 4,054 million during 2018. This was mainly attributed to fee and commission income from trade, term loans, other financial services and credit cards. Total Expenses (excluding one-off additional gratuity expense) recorded a modest increase of 8.5% from Rs.10,882 million to Rs. 11,802 million. This increase can be attributed to increased investments on branch upgrading and refurbishments, digital capabilities and IT infrastructure and staff benefits.

Bank’s Earnings per Share (EPS), Return (profit before tax) on Asset (ROA) and Return on Equity (ROE) are recorded at Rs. 8.7 per share, 1.1% and 9.3% respectively. These would have been Rs. 10.9 per share, 1.3% and 11.5% respectively if the impact of one off additional gratuity adjustment is excluded.

In 2018, the Bank network increased to 170 Banking Centres, 207 ATMs and 98 Student Saving Centres.

The Bank’s Common Equity Tier 1, Total Tier 1 and Total Capital Adequacy Ratio remained strong at 10.2%, 10.2% and 13.3% respectively as at 31st December 2018, as against the statutory minimum.

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